Legionfarm - Pitch - Deck (Upd April 2019)

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PITCH

Legionfarm
The UBER for Paid Services in Online Games 


We help gamers with little time master complex game content by hiring professional players to assist with
accelerated levelling and in-game digital asset accumulation
PITCH

Main
 Gamers from 26 to 40 y.o., who play multiplayer online games


clients

That are
 lack of time or a good team for passing the most interesting game content and getting the best in-game
unsatisfied rewards
with

Legionfarm is a platform for paid gaming assistance services connecting ordinary players with professional
gamers and gaming teams

That
 players to achieve the desired levels, get items and in-game achievements that can not be bought but can
allows be obtained through the efforts within the game. Due to lack of time, ordinary players can not achieve the
desired results on their own, but with Legionfarm, it becomes possible

In contrast to the top competitors (Playerauctions, G2G, Funpay, etc.) Legionfarm is UBER, while traditional in-game
trading marketplaces are like Ebay with private taxi drivers. Legionfarm uses predictive game data
analytics and chatbots that provide 2-3 times faster service with high-quality processes. Legionfarm has
way more scalable business model
BRIEF OVERVIEW
Business model Market
Sector: Gaming - Virtual economy. Domestic market of multiplayer online The number of gamers worldwide is 2,2 bn
games. The volume of the global gaming market is $137,9 bn
Clients: Gamers of MMO games, buying gaming assistance services. The target market of in-game trading is $3,3 bn
Business model: Reverse marketplace.

Monetisation model: Commission for the completed services. Current game disciplines
Pricing: Ranges from $15 to $3000 per service, LTV = $550+.

Geography
And 7 more
Clients: 80% USA, 20% Europe, UAE, Australia.

Agents: 70% CIS, 20% Europe, 10% USA.
In 3-5 years: Current + Asia and CIS.
Team
32 people with expertise in the gaming market for more than 10 years:
Revenue dynamics, $k Alexey Belyankin - CEO&founder - 11 years in the gaming industry, started
as eSports player, founded Mmoguard, Powerboosting.com, Rbgboost.net
projects, worked in Blazingboost.com

600
Kirill Chuvakov - CPO&founder, ex-CPO GOSU.AI, ex-Product manager in
505
453 mail.ru
450
388 • R&D - 9
318 • Customer service - 11
300 • marketing - 7
239 213
168 • back office - 3
150
66 79
14 Investment requirement
0
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 $700 000 (R&D - 60%, Marketing - 40%)
THE COMPANY OPERATES IN A GROWING MARKET
Gaming market dynamics, $bn Gaming services market in MMO games
200 Ordinary gamers - 55%
180.1
165.9 Spend less than 2-3 hours a day gaming.
151.9 They dream of the highest rewards, but
150 never achieve them.
121.7
137.9
1.3 

100
bn Amateurs - 40%
registered Spend between 4 to 8 hours a day gaming.
MMO gamers Often team up with other amateurs and
50
Smartphone ordinary players and have difficulty getting
Tablet
Console
into the major league teams.
Browser games
PC
0
2017 2018 2019 2020 2021 Professionals - 5%
Top rated players who have achieved the
most honourable gaming awards.

By the end of 2018, there were 2.2 billion active gamers in the world,
out of which 47% (1 billion) made in-game purchases.
 To date, more than 20 million players use the services of paid assistance
The volume of the global gaming market reached $137.9 billion (in and p2p assets trading platforms in MMO and competitive online games
comparison, 2017 was estimated at $121.7 billion). annually.
The most active gaming audience are representatives of millennials,
that provide steady long term growth potential for this market.

*: Source - NewZOO, Wikipedia, Similarweb,


Venturebeats
THE COMPANY OPERATES IN A GROWING MARKET

TAM SAM SOM

3,2
$ bn

480 
 30 


40 

$ mln $ mln
mln gamers

The number of gamers involved into virtual Share of paid services of boosting, In 2021, Legionfarm plans to reach $30
economy worldwide reaches on average 1,5-2% of powerleveling and coaching usually takes on million in annual turnover and take a 6-7%
the total number of gamers. With the projected average 15% of the total virtual economy share of this market.
market growth, this number will gradually increase market.
to 3-4% until 2021.

Average ARPPU in in-game trading market across
all the game disciplines is $80 per year.
The size of the Legionfarm’s target market
(SAM) will reach $3.3 billion.
THE GAMING MARKET TRENDS

#1 The emergence of platforms for in-game services


The gaming industry is one of the fastest growing sectors in the economy. Important component is the in-game market, which is growing by 10-15% per
year. At the moment, it is not fully controlled by the game publishers, who periodically suppress players that grossly violate the user agreements. Some
game developers are already starting to work on building platforms that help to increase gamers involvement in the game. At the moment there are
no major players in paid services in this market. Therefore, the creation of such platforms will be in trend in the coming years.

#2 The growth of the audience of team MMO-games


On average, the audience for online team games is growing at 5% per year. Along with the improvement in the value proposition of coaching platforms,
the share in the total number of players using the services is also growing. The penetrating ability of platforms, together with the increase in the number of
users in team games, gives a steady growth of the niche audience by 9-12%.

#3 Young gamers are growing up


The audience of online games is growing up. The primary customer base consists of 26-40 y.o. gamers. According to the research, 70% of children
under the age of 18 that play or have played various games, in the next 5 years will become paying customers, which will significantly boost the
gaming economy.
KEY CUSTOMER SEGMENT

Segment 26-40 y.o. men playing 1-2 hours a day due to real-life employment.
They have money, but they do not have time and just want to enjoy the game.

Problem 1. Lack of time and desire to avoid routine. Developing a game character and getting in-game achievements and items
are associated with large time investments for passing boring levels (monotonously repeated actions are required).
2. Inability to join a strong team because a gamer spends not enough time on the game. They have to play with weak
teams that will never pass the top levels of the game.

Current
 No solution: Fearing months of game grinding, the gamer abandons the game

Long and painful solution: Levelling and learning by yourself for 3-6 months or more
solution Quick solution: Buying paid services as an alternative

The main reason of
 The absence of high-quality services on the market; the order fulfillment usually begins in 2-3 days; services are often
dissatisfaction not finished on time; the order status during its processing period is not clear.

Legionfarm allows players to get the desired results (experience, skills, achievements, items) 2-3 times faster than competitors without spending time
on the selection of a suitable team and provides automatic updates on progress and quick 24/7 communication.
BUSINESS MODEL: HOW IT WORKS

Player acquisition Agent acquisition


forums, Adwords, forums, gaming chats
messengers

Players choose a service

LEGIONFARM LEGIONFARM
Customer service Agent recruitment In-game service

The first sale is made via chatbots and Coordination of service delivery
sales department. Half of sales are The algorithmic search of
automated. time, quality control, performance an agent for each
guarantee individual order based on
the game profile data,
After the first purchase, Legionfarm analyzes client’s
game profile and offers unique recommendations on
Transfer of the revenue share to schedule synchronisation
repeated purchases that will allow improvements in game the agent for a successfully
progress. completed order

The company works as an intermediary between the client and the agent and is not responsible for any legal risks connected with this
type of service for games owners and publishers.
BUSINESS MODEL: HOW IT WORKS

Algorithms of "smart" offers


- The offer in the user's timeline (depending on the live-events
occurring in the game)
- Predictive offers (created on the basis of events and purchases
from the gamer’s profile)
- Upgrade (based on the current progress in the profile)

Repeat the
40%
purchase

7% Remain for 2+
years (plateau)

С1 Offer C1 Request Payment Fulfilment Completed


Acquisition channels

Adwords (45%)
- Choosing services yourself
28% of customers
of the order is 2-3
- The client enters their times faster than
Organic (45%) gaming profile and 7%
pay w/o questions,
32% 150$ average on the Collecting the
automatically receives a 16% converted by market.
 feedback from the
personalized offer. chatbot and 56% Client and performer client and the game
Other (10%) The average
speak with sales communicate analyst.

check for the first
managers through our bots Preparing a new offer
purchase
DEVELOPMENT DYNAMICS: REVENUE
2 560
2600 6000

2 108 505 210
5000
453 445
1 717
1 486 388 049 4000
1 303
1 152 318 720
3000
259 599
670 239 276 235 093
213 152
396 188 833 2000
168 315
152 284
103
114 339 111 008
79 385 83 364 1000
65 707
35 482 42 868
13 538
7 311

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

The number of orders Margin (comission), $k Revenue, $k


DEVELOPMENT DYNAMICS: KEY METRICS

$65 $550 50%


User acquisition
 Average customer’s
Commission (margin)
cost LTV

100% 40%
CLIENTS USERS

From USA, Europe, Make repeated


Australia and UAE purchases
COMPETITORS

High process automation /



Traditional p2p Marketplaces for Platform (Scalability) Uber-like reverse marketplaces
buying in-game items (loot,
currency, etc.)

High quality of communication


and high service speed

Low quality of communication with


customers and low service speed Stores of in-game items and
services

Guilds in games

Low process automation /



Manual labor
COMPETITORS

Competitor Focus Legionfarm difference

In-game trading market giants, such as Services in 8 out of 10 cases require prior approval of the deal details and
Playerauctions, focus on currency and communication during while order is active (av. 5 days). Private boosters don’t
Playerauctions.com,
item trading. Such sales in 95% of work systematically. Service execution with Legionfarm is 2-3 times faster than
Funpay, G2G, ItemMania
cases do not require communication comparable marketplaces due to formalized and automated processes.
etc.
with the user and are delivered Legionfarm is UBER, while traditional marketplaces are like Ebay with private
automatically. taxi drivers.

Competitors are operational businesses that have difficulty scaling.


Blazingboost, Coaching and boosting services in Legionfarm’s unique value proposition lies in the full replacement of the
Epiccarry etc. online games. customer service department with algorithms of “smart” team selection,
predictive sales analytics and chatbots.

Gamersensei allows you to “rent” professional players “one person at a time”


for playing together. You can only pay for rental hours. Legionfarm charges by
Marketplace. Coaching services in successful performance instead of hourly payments, and offers the option of
Gamersensei.com
online PC games. solo or team play. Predictive analytics of Legionfarm selects the best offers for
clients, while at Gamersensei the user must explain what they want and what
is the right way to do it.
PLANS AND KEY HYPOTHESES FOR THE ROUND

#1 Scaling in current segments


By increasing our marketing costs by 500% in the tested channels before the end of 2019 (Google.Adwords, ads on thematic forums and SEO), first-sale
revenue (C1) in the current tested games like WOW, Destiny 2, Overwatch, Anthem, Black Ops 4, Fallout76 will grow from $ 45,000 to $ 180,000 per
month. With the current return rate, an increase in the number of new paying users will lead to an increase in revenue from repeated purchases from $
85,000 to $ 320,000 per month. Total revenue in 2019 is projected to grow from $ 150,000 to $ 550,000 per month.

#2 Economy and demand test in 50 new games


We are going to test the unit-economy in 50 new games by the end of 2019. This will allow to add +10 games with advantageous economy. Entering new
games will increase LTV by 10-15%, because the customers, as a rule, play more than 2 online games simultaneously or change games on a regular
basis. We already have agents for individual disciplines and we are able to engage new ones to the platform.

#3 Platform automatisation
Refinement of our platform for managing and maintaining orders will reduce operational costs and, by automating parts of the processes, increase the
speed of communication with clients. By 2020, this will lead to an increase in LTV by 40% and the platform throughput to $1M per month.

In the coming year, the company will open a gaming center for its gaming teams with a capacity of 100+ players for testing product hypotheses and
developing the software, which will run on agents’ PCs worldwide.
PLANS AND KEY HYPOTHESES

4 829 4 904
5000 4 744 800
4 577
4 408
4 150

3750 3 420 3 506 600


3 321
3 180

2 659 2 757
2 486
2500 400

1 854 1 928
1 742
1 464
1 139
1250 200
786 875

135 131 171 220 261 278 289 373 399 413 477 498 513 526 622 661 687 712 724 736
0 0
01.2019 02.2019 03.2019 04.2019 05.2019 06.2019 07.2019 08.2019 09.2019 10.2019 11.2019 12.2019 01.2020 02.2020 03.2020 04.2020 05.2020 06.2020 07.2020 08.2020

Purchases Revenue, $k

Entering the markets of new games, adding channels of promotion and automating the platform will result in
the revenue increase up to $ 700,000 per month by mid-2020
DEVELOPMENT PLANS

16
EXIT > $100 mln
Round A

100000 clients
Turnover: $30M per year

50 games
12
30000 clients
Turnover: $10M per year

Seed+
 50 games
10000 clients
8 Turnover: $4M per year

10 games
4000 clients
Turnover: $2M per year
2 games

4 50 clients
Turnover: $4,000 per month.

1 game

Q3' 2017
Q4 2016 Q4' 2017
2017 Q1' 2018
2018 Q2-4'
20192018 2019
2020 2020
2021 2021
2022
TEAM

Alexey Belyankin Kirill Chuvakov


Founder & CEO

Co-founder & CPO
11 years on the gaming services market. Participant of 11th and 13th full- 9 years of experience in the gaming industry. Founded Gosu.ai - an AI-trainer for competitive
time IIDF startup accelerators. In the past, eSports player and the member online games. Under his leadership, the product serves more than 100 thousand active users.

of the eSports team Virtus.pro (2009). He was a co-founder in, Headed the creation of educational products in mail.ru.

Powerboosting.com, rbgboost.net, built processes in Blazingboost.com. In Founder of the Devs Go - game developers community.
2016, he founded the MMOGUARD p2p marketplace, which later
transformed into Legionfarm reverse marketplace.

Alexander Gornyi
Advisor
Former Chief Strategy Officer in Mail.ru Group. Deputy CEO in CityMobil - Taxi aggregator.

Headed ICQ project in 2010. He maintains a popular blog #стартапдня (startup of the day) with
author reviews of startups and their business models.

And 30 highly qualified specialists from the gaming industry


INVESTMENTS

Marketing (40%)
Investments required Experiments and Scaling
- Testing the new channels: Twitch,
YouTube, thematic resources, referral
system

- Scaling the current channels: Google
AdWords, Facebook, thematic forums in
current and new tested games


$700,000 - Economy testing in 50+ new games

R&D and salaries (60%)


Product and Processes
- Back-end, Front-end developers
- Data scientists

- Content managers, designers
- Chief Operating officer
CONTACTS

Alexey Belyankin
Founder & CEO

ceo@legionfarm.com
+7 913 763 88 81

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